What is a Car Trade-In and How to Trade-In My Car?

Buying a new car, whether it be brand new or new-to-you, is always exciting, but there are some things that you should keep in mind. 

Here are some tips for playing your cards right before you park that new ride on your driveway.

 

Used cars are in demand

Used vehicles are in high demand because they are cost-effective, and dealerships are always looking to buy used vehicles to build their inventory. The need for used cars is growing due to better technology that has stretched the lifespan of cars and trucks. Newer vehicles allow for four to six owners, compared to two to three.

According to Automotive News, 2019 has been a good year to sell used cars both for dealers and individuals. While new car sales are slowing down, used car sales are equally rising. In 2018, Edmunds estimated U.S. dealers sold 40.4 million used cars, 3.1 percent more than in 2017. Although these estimates relate to our neighbours in the south, Dennis DesRosiers, president of DesRosiers Automotive Consultants, told The Canadian Press that the used vehicle market in Canada will add approximately half a million more in sales in the next three to five years.

 

How much is my car worth?

If you are looking to buy a new car, a good thing to do first is to check how much your current vehicle is worth and how much your next one costs. 

The internet is a great place to see how much you can sell your car for and how much a new (or new-to-you) car costs.

Many online listings provide valuable pricing information. Look up ads for vehicles that are similar to or the same as yours to determine how much the market is asking for and how much people are willing to pay for cars with the same mileage, year, and condition.

You can also go to Kijiji Autos or Craigslist, which mostly show ads for private sales. 

At Birchwood, we have more than 700 pre-owned listed of more than 30 makes. You can click here to set the search to match your own vehicle. 

We also offer a free online tool to give you an estimate price for your car in just a few minutes. WeBuy calculates the offer using a tool for fluctuating market conditions and used car prices that vary from day to day. The calculation is based on several factors, such as your vehicle’s details, supply and demand, historical trends, regional differences, and local market influences. 

 

How does wholesale car pricing work?

When you are trading in your car, the price we offer is determined by the factors listed above plus how much the dealership is going to spend to sell your car (with advertisement, commissions, paperwork, etc.).

For example, you might look at an ad for a 2014 Kia Sorento just like yours that we are selling for $12,000, but we only offered you $9,000. That’s because there are costs to the dealer related to re-selling.

 

If I could sell it for more by myself, then what is the benefit of trading in?

Yes, you can potentially sell your vehicle for more on a private sale, but it’s not always the best option.

Trading in at a dealership can be a great deal if your buying a new car. The offered price is discounted off of your purchase and you can enjoy your new ride sooner!

And if sales is not your forte, trading in your car will save you the hassle.

When we buy your car, it’s our responsibility to get it cleaned, repaired, certified, re-licensed, inspected, and most importantly, sold. You do not have to stay home waiting for people to check your vehicle, spend time at test drives, go looking for potential buyers, or pay ads online to get your car noticed. 

Get the money in your pocket, spend more time on what you like and less time waiting for someone to buy your car.

 

Trading in at Birchwood is easy!

Through WeBuy, Birchwood’s free online tool, you can easily verify how much your car is worth and get an Instant Offer. And don’t worry, you are not obliged to sell your car and won’t have to pay anything if you start having second thoughts. You have seven days to redeem your offer at our head office located at 4280 Portage Ave. After that period, you can resubmit your request, but the offer may change.

Did you just buy a car but changed your mind? Is it financed and you haven’t finished paying? Not problems. Birchwood will pay it off and give you a cheque for the difference. Even if you’re not looking to buy a new car but wants to sell yours, we will give you the money and you’ll be walking on air.

Click here for more information or visit any of our dealerships to learn more about trading in your car.

 

Related Articles